TRREB says polling indicates rates will need to come down at least 1% to boost activity
Last month, Toronto’s benchmark home price declined to $1,162,167, marking a 4.6 per cent decrease year-over-year but an increase of four per cent from May, TRREB said.
Regardless of housing type, sales and prices were down across Toronto and the GTA from last year.
Townhouses weren’t far behind, suffering a 14 per cent decline, while semi-detached and detached homes declined by 11.4 per cent and 10.6 per cent, respectively.
The price slump was equally grim. Semi-detached homes led the descent with a 9.3 per cent decrease, followed by townhouses at 4.9 per cent, detached homes at 3.3 per cent, and condos at 1.5 per cent.
Regionally, Durham, had the steepest price decline, dropping 6.15 per cent, with Orangeville close behind at 6.14 per cent.
Although sales were down from both the previous month and year-over-year, active listings shot up by a staggering 67.4 per cent, giving buyers a distinct advantage in the well-supplied market, according to TRREB’s chief market analyst Jason Mercer.
“Recent home buyers have benefited from substantial choice and therefore negotiating power on price,” Mercer said. He anticipates that elevated inventory levels will help prevent a sharp rise in prices as sales pick up alongside anticipated lower borrowing costs.
“Ontario has set the goal of 1.5 million more homes on the ground by 2031. This is only possible if all levels of government ensure actionable solutions with sustained effort, including continuing to remove red tape, avoiding financial barriers to home construction, and minimizing housing taxes and development charges,” DiMichele said in the report.